Flashcards
Chapter 2 Marketing Book
Cards in this deck (31)
- 1strategic planningmanagerial process of creating and maintaining a fit between the organization's objectives an resources and the evolving market oppurtunities
- 2strategic business unites (SBUs)a number of very different businesses managed by large companies
- 35 characteristics of SBUs1. distinct mission and a specific target market
2. control over its resources
3. its own competitors
4. single business or a collection of related businesses
5. plans independent of the other SBUs in the total organization - 4market penetrationa firm using this would try to increase market share among existing customers
- 5market developmentmeans attracting new customers to existing products
- 6product developmententails the creation of new products for present markets
- 7diversificationstrategy of increasing sales by introducing new products into new markets
- 83 levels of ranges of change/innovation1. core innovation
2. adjacent innovation
3. transformational innovation - 9core innovationimplement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands
- 10adjacent innovationdecisions designed to take company strengths into new markets (use existing abilities in new ways)
- 11transformational innovationdecisions result in brand-new markets, products, and often new businesses
- 12portfolio matrixclassifies each SBU by its present or forecast growth and market share
- 134 strategies to allocate resources for each SBU in matrix1. build
2. hold
3. harvest
4. divest - 14buildif an organization has an SBU that it believes has the potentional to be a star, building would be an appropriate goal
- 15holdif an SBU is very successful cash cow, a key goal would be to hold or preserve market share so that the organization can take advantage of the very positive cash flow
- 16harvestbasic goal is to increase the short-term cash return without too much concern for the long-run impact
- 17divestgetting rid of SBUs with low shares of low-growth markets is often appropriate
- 18mission statementa statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
- 19SWOT analysis1. S- strengths (internal)
2. W-weaknesses (internal)
3. O-opportunities (external)
4. T-threats (external) - 20competitive advantageset of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
- 21cost competitive advantagebeing the low-cost competitor in an industry while maintaining satisfactory profit margins
- 22product/service differentiation competitive advantageexists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
- 23niche competitive advantageseeks to target and effectively serve a single segment of the market
- 24sustainable competitive advantageone that cannot be copied by the competition (example: Netflix)
- 25marketing objectivestatement of what is to be accomplished through marketing activities
- 26stated marketing objectives should be these 4 things1. realistic
2. measurable
3. time specific
4. compared to a benchark - 27marketing strategyinvolves activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
- 28implementationprocess that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives
- 29evaluationgauging the extent to which marketing objectives have been achieved during the specified time period
- 30controlprovides mechanism for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
- 31marketing auditthorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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- Flashcards on Chapter 2 Marketing Book, created by libbylu116 on 14/09/2015.
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